don't know why this would not be plastered all over the
Internet to scare the hell out of the U.S. population and
wake them up, "worse than Greece". A chart passed along to
the Weekly Standard from Senator Sessions office, ranking
budget committee member.
Full-Blown Civil War Erupts On Wall Street
– Financial Elite Start Turning On Each Other
article, I am surprised it took so long for this to come out,
let's see if it gets to the mainstream or traditional sources
of financial media.
David DeGraw - ampedstatus.org
Finally, after trillions in fraudulent activity, trillions
in bailouts, trillions in printed money, billions in political
bribing and billions in bonuses, the criminal cartel members
on Wall Street are beginning to get what they deserve. As the
Eurozone is coming apart at the seams and as the US economy
grinds to a halt, the financial elite are starting to turn on
each other. The lawsuits are piling up fast. Here’s an
Time to put your Big Bank shorts on! Get ready for
arun… The chickens are coming home to roost… The
Global Banking Cartel’s crimes are being exposed left & right…
Prepare for Shock & Awe…
Well, well… here’s your Shock & Awe:
First up, this shockingly huge $196 billion lawsuit just
filed against 17 major banks on behalf of Fannie Mae and
Freddie Mac. Bank of America is severely exposed in this
lawsuit. As the parent company of Countrywide and Merrill
Lynch they are on the hook for $57.4 billion. JP Morgan is
next in the line of fire with $33 billion. And many death
spiraling European banks are facing billions in losses as
FHA Files a $196 Billion Lawsuit Against 17 Banks
The Federal Housing Finance Agency (FHFA), as conservator
for Fannie Mae and Freddie Mac (the Enterprises), today filed
lawsuits against 17 financial institutions, certain of their
officers and various unaffiliated lead underwriters. The suits
allege violations of federal securities laws and common law in
the sale of residential private-label mortgage-backed
securities (PLS) to the Enterprises.
Complaints have been filed against the following lead
defendants, in alphabetical order:
1. Ally Financial Inc. f/k/a GMAC, LLC – $6 billion
2. Bank of America Corporation – $6 billion
3. Barclays Bank PLC – $4.9 billion
4. Citigroup, Inc. – $3.5 billion
5. Countrywide Financial Corporation -$26.6 billion
6. Credit Suisse Holdings (USA), Inc. – $14.1 billion
7. Deutsche Bank AG – $14.2 billion
8. First Horizon National Corporation – $883 million
9. General Electric Company – $549 million
10. Goldman Sachs & Co. – $11.1 billion
11. HSBC North America Holdings, Inc. – $6.2 billion
12. JPMorgan Chase & Co. – $33 billion
13. Merrill Lynch & Co. / First Franklin Financial Corp. –
14. Morgan Stanley – $10.6 billion
15. Nomura Holding America Inc. – $2 billion
16. The Royal Bank of Scotland Group PLC – $30.4 billion
17. Société Générale – $1.3 billion
The Age of Bank Failures
By Greg Hunter’s
The U.S. stock market surged yesterday on news the European
Union (EU) would deploy a two trillion euro rescue fund to
help get its sovereign debt crisis under control. This news
was so good even battered Bank of America stock jumped more
than 10%. Crisis averted? Hold on, not so fast. Some big
French banks are in trouble because they are up to their necks
with sovereign debt. Naturally, President Nicolas Sarkozy
wants action now. Yesterday, the Financial Times (FT.com)
reported the French leader said, “. . . an unprecedented
financial crisis will lead us to take important, very
important decisions in the coming days.” Raising the sense of
urgency, the French president added: “Allowing the destruction
of the euro is to take the risk of the destruction of Europe.
Those who destroy Europe and the euro will bear responsibility
for resurgence of conflict and division on our continent.”
(Click here to read the complete FT.com story.)
Jim Rickards of Tangent Capital says you have to
distinguish between the bonds, banks and the euro. He said
recently in an interview on King World News, “The bonds are
definitely going to crash and burn. The bonds are toast. . . .
The banks own the bonds, and if the bonds are toast, the banks
are toast. . . . But that doesn’t mean the currency is toast.”
(Click here for the complete King World News interview with
Mr. Rickards.) Rickards expects the euro currency will
survive, but many banks will not.
Reggie Middleton of Boombustblog.com says the reason for
the coming bank failures is simple—high debt loads. Middleton
says many European banks have 40 to 1 leverage. He recently
explained how dangerous this was by saying, “I take a dollar
and I borrow $39, and I go out and buy something with it. All
you need is a 2% move to totally wipe you out—100%. And we all
know a lot of sovereign bonds have moved a whole lot more than
(Click here to see more of Middleton on the Boombustblog.com.)
Middleton is expecting more European bank runs as the
crisis picks up speed.
China, Russia quit dollar
I am surprised the dollar did not drop on this news.
This could spell the beginning of the end for the Dollar as
St. Petersburg, Russia – China and Russia have decided to
renounce the US dollar and resort to using their own
currencies for bilateral trade, Premier Wen Jiabao and his
Russian counterpart Vladimir Putin announced late on Tuesday.
Chinese experts said the move reflected closer relations
between Beijing and Moscow and is not aimed at challenging the
dollar, but to protect their domestic economies.
“About trade settlement, we have decided to use our own
currencies,” Putin said at a joint news conference with Wen in
The two countries were accustomed to using other
currencies, especially the dollar, for bilateral trade. Since
the financial crisis, however, high-ranking officials on both
sides began to explore other possibilities.
The yuan has now started trading against the Russian rouble
in the Chinese interbank market, while the renminbi will soon
be allowed to trade against the rouble in Russia, Putin said.
“That has forged an important step in bilateral trade and
it is a result of the consolidated financial systems of world
countries,” he said.
Putin made his remarks after a meeting with Wen. They also
officiated at a signing ceremony for 12 documents, including
The documents covered cooperation on aviation, railroad
construction, customs, protecting intellectual property,
culture and a joint communiqu. Details of the documents have
yet to be released.
Putin said one of the pacts between the two countries is
about the purchase of two nuclear reactors from Russia by
China’s Tianwan nuclear power plant, the most advanced nuclear
power complex in China.
Putin has called for boosting sales of natural resources –
Russia’s main export – to China, but price has proven to be a
Russian Deputy Prime Minister Igor Sechin, who holds sway
over Russia’s energy sector, said following a meeting with
Chinese representatives that Moscow and Beijing are unlikely
to agree on the price of Russian gas supplies to China before
the middle of next year.
Russia is looking for China to pay prices similar to those
Russian gas giant Gazprom charges its European customers, but
Beijing wants a discount. The two sides were about $100 per
1,000 cubic meters apart, according to Chinese officials last
Wen’s trip follows Russian President Dmitry Medvedev’s
three-day visit to China in September, during which he and
President Hu Jintao launched a cross-border pipeline linking
the world’s biggest energy producer with the largest energy
Wen said at the press conference that the partnership
between Beijing and Moscow has “reached an unprecedented
level” and pledged the two countries will “never become each
Over the past year, “our strategic cooperative partnership
endured strenuous tests and reached an unprecedented level,”
Wen said, adding the two nations are now more confident and
determined to defend their mutual interests.
“China will firmly follow the path of peaceful development
and support the renaissance of Russia as a great power,” he
China may be bigger economy than
US within two years
By Jeremy Warner
Here’s a finding that will have any red-blooded American spluttering
into his cornflakes. According to the Conference Board, a highly
respected economic research association, China will overtake the US as
the world’s biggest economy by 2012, or within two years.
OK, so in dollar terms, that’s obviously not going to be the case. It
will be a lot longer than two years before China overtakes the US on
that measure. But in terms of purchasing power parity, according to the
Conference Board’s latest world economic outlook, China is already
nearly there, and by 2020 will have reached a size of output which is
nearly half as big again as the US.
Here’s the Wikipedia link explaining what PPP is, but broadly
speaking the idea is to measure output according to the volume, not the
price of goods and services produced. The assumption made is that
identical goods will have the same price in different markets. In
practice, this is obviously not the case. A taxi ride in Beijing, for
instance, will cost you approximately a tenth of what it costs in
London. But it is essentially the same service.
In any case, in PPP terms, the Conference Board’s projections show
China as 24.1 per cent of world output by 2020, and the US at just 14.8
We all knew that the weight of economic growth had skewed
dramatically since the crisis from advanced to emerging market
economies, but many in the West don’t yet seem fully to appreciate the
speed with which economic and geo-political power is shifting. This is a
truly seismic change. How these once irrelevant economies choose to use
their new found power is the overarching question of our times.
Criminal Defense Lawyer
I think Peter Schiff has one of the
best economic opinions out there.,
he seems to get it right more than most.
October 8, 2010
the US economy has failed to recover as widely predicted, pressure on
the Federal Reserve to conjure a solution has increased. In fact, the
Fed now faces the hardest choices in its history. It can either
redouble its past efforts to re-inflate America’s bubble economy
(risking the destruction of the US dollar) or it can stop pumping and
let the economy deflate to a self-sustaining level. Unfortunately,
both choices guarantee severe economic pain – but only one offers the
possibility of ultimate success.
Today’s news that the economy lost 95,000 jobs in September confirms
that record doses of stimulus have failed to create a real
recovery. The loss of 159,000 government jobs in the month could have
been a positive if those lost positions had been replaced by
wealth-generating private sector jobs. But the 65,000 jobs generated
by businesses didn’t come close. Worse still, most of these jobs came
from the goods-consuming service sector rather than the
goods-producing manufacturing sector (which lost another 6,000 jobs).
The unemployment rate has now been above 9.5% for 14 consecutive
months, the longest such streak since monthly records began in
1948. More importantly, the real unemployment rate, which factors in
discouraged and under-employed workers, rose from 16.7% to 17.1%.
Armed with this weak jobs report, the Fed seems poised to make good on
its plan for other round of quantitative easing (in English: printing
money). Recent statement from top Fed governors have made that
sentiment clear. Apparently they feel that they must do something,
even though Fed inaction would be far better for the economy. At a
time when we should be trusting the markets to grind out three yards
in a cloud of dust, we have put our faith in the Fed’s ability to
fling a Hail Mary pass, even though all previous attempts have failed.
Most people assume that the “crash” I referred to in my 2007 book
“Crash Proof: How to Profit from the Coming Economic Collapse”
occurred in 2008. Those who actually read the book know otherwise. The
financial crisis that resulted from the bursting of the housing
bubble, accurately foretold in my book, was not the crash itself, but
merely the overture to a much more tragic economic opera for which the
curtain is just now rising.
Peter Schiff is president and chief global strategist of Euro Pacific
Capital Inc., a broker-dealer based in Westport, Connecticut.
Schiff frequently appears as a guest on CNBC, Fox News, and Bloomberg
Television and is often quoted in major financial publications. His
latest books are How an Economy Grows and Why It Crashes
Crash Proof 2.0: How to Profit From the Economic Collapse
Fed Says No Inflation?
Look how much
have commodities risen Year over Year. These increases will begin to
show up in retail prices soon. There is an inflation problem and it is
getting closer. Stock up on non perishable food, prices are going much
higher in future. There is a reason why gold and silver are at all time
highs and the dollar is losing strength.
Bill Simon, CEO of Wal-Mart’s U.S. business, at a
conference last week,
on behavior at a Walmart store around midnight
at the end of a month:
“The paycheck cycle we’ve talked about before remains extreme. It is
our responsibility to figure out how to sell in that environment,
adjusting pack sizes, large pack at sizes the beginning of the month,
small pack sizes at the end of the month. And to figure out how to deal
with what is an ever-increasing amount of transactions being paid for
with government assistance.
“And you need not go further than one of our stores on midnight at
the end of the month. And it’s real interesting to watch, about 11 p.m.,
customers start to come in and shop, fill their grocery basket with
basic items, baby formula, milk, bread, eggs, and continue to shop and
mill about the store until midnight, when electronic — government
electronic benefits cards get activated and then the checkout starts and
occurs. And our sales for those first few hours on the first of the
month are substantially and significantly higher.
“And if you really think about it, the only reason somebody gets out
in the middle of the night and buys baby formula is that they need it,
and they’ve been waiting for it. Otherwise, we are open 24 hours — come
at 5 a.m., come at 7 a.m., come at 10 a.m. But if you are there at
midnight, you are there for a reason.”
John Williams: Current projections on the federal budget
deficit, U.S. Treasury funding needs, banking industry solvency stress
tests, etc. all have been predicated on some form of economic recovery.
There is and will be no recovery for the foreseeable future; and the
negative implications of that for U.S. funding needs and for systemic
stability should act as eventual triggers for massive dumping of the
...The image of tap-dancing on a land mine pretty much describes what
the Federal Reserve and the U.S. Government have been doing in order to
prevent a systemic collapse in the last couple of years.
Now, as business activity sinks anew, much expanded supportive measures
will be needed to maintain short-term systemic stability. Such official
actions, however, in combination with global perceptions of limited U.S.
fiscal flexibility, likely will trigger massive flight from the U.S.
dollar and force the Federal Reserve into heavy monetization of
otherwise unwanted U.S. Treasury debt.
When that land mine explodes — probably within the next six-to-nine
months, the onset of a U.S. hyperinflation will be in place, with severe
economic, social and political consequences that will follow.
...Already the longest and deepest economic contraction of the
post-World War II era, the current downturn in the U.S. economy is
re-intensifying, with no near-term stability or recovery on the forecast
...In these circumstances, the financial markets likely will be highly
unstable and volatile. Holding assets outside the U.S. also may have
Yes indeed the financial markets will be highly unstable and volatile.
Let’s not forget, no recovery, more monetization and the threat of
With the stock market near the end of this long rally, the mainstream
media continues with the big lie, stating that we are in a recovery. The
sad reality is that the nation is in fact on the brink of another
crisis. As these types of cycles progress there is increased flight from
paper assets. Get ready for another move higher in the fear index.
To subscribe to ShadowStats
Tough Economy Forcing Record Number of
Workers to Crack Their Retirement Nest Eggs
The rough economy
is taking its toll and pushing a record number of people to take money
out of their
“I would say the No.1 reason is foreclosure,” said David Wray,
president of the Profit Sharing/401(k) Council. “What you have is
two-income families, one person loses their job. Both people’s income
was necessary to make the mortgage payment.”
In fact, July marked the 17th consecutive month that foreclosure
activity exceeded 300,000 homes.
Beth McHugh, vice president of marketing insights at Fidelity, said
that’s a key reason more people are tapping their 401(k)s — an uptick
from about 20 percent to almost 22 percent.
“In the last six months we did see an up-tick in loan requests to
prevent eviction and foreclosure,” she said.
There are two ways to pull money out of 401(k)s. One is to simply
borrow from your own savings.
“401(k) loans are very easily accessible compared to any other kind
of individual credit to this point,” Wray said. “It’s more available and
the interest rates are far lower.”
Even better – it’s your
“So rather than borrowing from a bank or putting the amount on a
credit card, you’re actually borrowing the money from yourself and as a
result you are then paying yourself back,” Fidelity’s McHugh said.
And at much lower interest rates, Wray added.
“The typical 401(k) plan interest rate is prime plus one, so it’s
much lower than 14 or 15 percent, which is what you would pay in a
credit card.” he said.
Or even what a bank would charge.
The other way to tap your 401(k) is through what is called a
“hardship withdrawal.” Hardship withdrawals are really the last resort
and for individuals that have a heavy and immediate financial need,”
Hardship withdrawals are
regulated by the IRS because the money in a 401(k) has never had